Investment
$6.5 trillion in investments are needed annually to transition to a sustainable and resilient future by 2030[1] in line with Sustainable Development Goals. The bulk of the financing of these investments needs to come from the private sector. Consequently, by 2025, the private markets in sustainable finance are projected to grow to €1.2tn in Europe, representing 42.4% of the total European private assets market.
With its team and innovative technological set-up, LEIW will be perfectly positioned to enable the necessary private sector contribution through sustainable private debt and other alternative solutions. As private debt specialists LEIW will promote the necessary global expansion and growth of sustainable technology and expertise, backed by decades of experience in the industry.
OUR OBJECTIVE FOR SUSTAINABLE STRATEGIES AND SOLUTIONS
I. Sustainable Private Debt Strategies are planned to generate financial returns by funding mostly senior debt for sustainable infrastructure projects especially in the energy sector, and projects generating Verified Carbon Credits (VCCs).
With sustainable infrastructure investments, we will target individual equipment or entire systems for example in energy, transportation, communication, and banking, with the objective to improve the human experience on our commonly shared earth over the entire infrastructure lifecycle. Our conscientious investments will aim to reduce the environmental impact, create, and improve regional workforce and thereby driving growth. Sustainable infrastructure private debt investments will be based on three pillars at LEIW:
• Financing of Infrastructure Systems, such as mini-grids, and metro-grids, supplying necessary energy to business hubs and industrial zones in a sustainable way, often with a combination of wind, solar, hydro and other sustainable energy conversion, ideally with energy storage capacities. A use case would for example be the small island nations’ sustainable energy infrastructure.
• Financing of individual component roll out, such as private debt financing of solar panels for businesses with a high building inventory, or hydrogen tanks for remote farming installations, and potentially pooled in asset-backed-structures
• Venture debt for sustainable infrastructure technology scale-ups (more below)
Through the planned private debt financing of projects generating Verified Carbon Credits, we will enable economic actors to offset their remaining environmental impact after taking all measures to improve the production process. The respective projects will sell generated carbon credits into available markets, and additional financial returns will be generated through ancillary products or services from the funded projects, such as revenue from timber, renewable energy, agriculture, or other by-products. Our private debt structuring will offer potential for steady income streams for debt repayments and interest.
LEIW’s investment will first focus on Nature-Based projects without excluding Renewable Energy (Infrastructure), Technology-Based and Community-Based projects, with an intended focus on nature based carbon removal through afforestation, reforestation and revegetation (ARR). On the follow, LEIW will target nature based avoidance projects, as well as technological approaches, for example in sustainable commodity production methods avoiding undesirable environmental impacts.
With transparency and accountability at the core of our approach, our solutions will prioritise projects with strong environmental and social benefits thanks to a rigorous due diligence process that ensures projects deliver real and measurable impact.
The Due Diligence will be enhanced using blockchain for immutable project history and advanced analytics to track credit generation, ensure transparency, and optimize transactions.
Strategic Partnerships and Collaboration with certification bodies, local hiring agencies, and corporates ensure projects meet rigorous certification standards such as the Verra, Gold Standard, Verified Carbon Standard (VCS), or even established governmental frameworks to create high-quality, additional, and verifiable credits benefiting our solutions and minimizing risk.
II. Venture Debt strategies target the debt financing of innovative scale ups in conscientious finance, who have received initial venture capital investments, are post-product and with available client orders generating income streams that permit financing through private debt structures. The venture debt purpose is closely defined and dictate the debt structure, including all credit risk mitigating features, and tight runway monitoring through our technological and data driven approach to track the success in realising the strong demand trajectory.
The investments will initially focus on companies in areas such as sustainable energy infrastructure technology, satellite imagery, soil microbiome detection, improved forest management technologies, and where LEIW will have a direct edge by leveraging industry knowledge or data analytics to assess the depth and sustainability of demand. Indeed, all these sectors benefit from global megatrends such as sustainable economic structures, and technological innovation. Our focused approach will align those trends with advanced technologies enabling sustainable business growth, thereby offering attractive risk-adjusted returns.
III. Ethical Recovery Private Debt strategies focus on providing tailored debt solutions to sustainable finance projects that are in financial difficulty but are fundamentally viable. The strategy emphasizes ethical recovery, where the objective is to restore the project to stability and ensure its long-term success while promoting education, inclusion, and collaboration.
The investment at the start will focus on sustainable energy infrastructure projects, sustainable Agriculture projects, and Sustainable Microfinance projects.
By focusing on viable but distressed projects, our solution will aim to achieve strong returns while mitigating downside risks through structured recovery plans. LEIW’s Ethical Recovery solution will benefit from our deep debt management experience, combined with our sustainable finance structuring and pricing expertise, quantitative finance and Artificial Intelligence knowledge.
Core operational principles
1. Investing with Impact
1. Investing with Impact
2. Digitalization of Investment
2. Digitalization of Investment
3. Enhancing Liquidity
3. Enhancing Liquidity
Based on our expertise, we provide a key solution to global scaling of sustainable finance investments through private debt solutions, in developed as well as developing markets, with strict initial and ongoing project verification, and the necessary diversification across projects.
Our technological focus on transparency and traceability reduces green-washing risk, providing corporations with higher quality credits to reach their respective targets.
Our expertise in structuring capital markets workflow in exchange traded products develops the necessary secondary market processes to permit a flexible asset allocation in line with wanted risk exposures and the actual emission adaptability.